What are tariffs and how do they affect stocks?

Tariffs are taxes imposed on imported goods that make foreign products more expensive in the domestic market. For stocks, tariffs can create winners and losers. US-based manufacturers competing against imports (like those in this stock group) often benefit as their foreign competition becomes more expensive, potentially leading to increased market share, better pricing power, and higher profits. However, companies that rely heavily on imported materials might face higher costs.

When will the 30% tariffs on EU and Mexican imports take effect?

According to the information provided, the new 30% tariffs on imports from the European Union and Mexico are scheduled to take effect on August 1, 2025. This gives companies and markets time to adjust to the upcoming policy change, which is why these stocks might see gradual changes in investor interest as the implementation date approaches.

What sectors are most affected by these tariffs?

The tariffs primarily target vehicles, machinery, and pharmaceuticals imported from the EU and Mexico. This is why many stocks in this group are from the automotive and industrial manufacturing sectors, including automakers (like GM and Ford), parts suppliers, and companies that produce various components and equipment for manufacturing. These US-based companies stand to gain a competitive edge as similar imported products become 30% more expensive.

What does "onshoring" mean in relation to these stocks?

Onshoring refers to the process of bringing manufacturing or other business operations back to the company's home country (in this case, the United States) that had previously been moved overseas. Tariffs can encourage onshoring by making overseas production more expensive. Several companies in this group, like Lincoln Electric and MEC, are positioned to benefit if tariffs lead to more manufacturing activities returning to the US, as they provide products and services to support domestic industrial production.

What is "Potential Profit %" in the stock data?

"Potential Profit %" represents the estimated percentage return that analysts believe a stock might achieve within a specific timeframe, typically the next 12 months. It's based on analysts' research and projections, comparing their target price to the current trading price. While this can be a helpful metric when evaluating stocks, remember that these are projections and not guarantees of future performance. Always consider multiple factors when making investment decisions.

16 handpicked stocks

US Protectionism: Tariffs on EU & Mexico

This carefully selected group of stocks features American companies that could benefit from the upcoming 30% tariff on EU and Mexican imports. Our analysts have identified domestic manufacturers and suppliers that may gain competitive advantages as foreign goods become more expensive.

Han Tan | Market Analyst

Published on July 14

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

General Motors Co.

Current price

$59.57

As a major US automaker, GM competes directly with vehicle imports from Mexico and the EU, and stands to benefit from the increased cost of foreign ca...

As a major US automaker, GM competes directly with vehicle imports from Mexico and the EU, and stands to benefit from the increased cost of foreign cars.

Ford Motor Co.

Current price

$12.18

Ford is a direct competitor to European and Mexican auto manufacturers and will likely see a competitive advantage as tariffs make imported vehicles m...

Ford is a direct competitor to European and Mexican auto manufacturers and will likely see a competitive advantage as tariffs make imported vehicles more expensive.

American Axle & Manufacturing Holdings I

AXL

Current price

$6.08

A US-based automotive supplier, AXL benefits as tariffs encourage domestic vehicle production, increasing demand for its driveline and metal forming p...

A US-based automotive supplier, AXL benefits as tariffs encourage domestic vehicle production, increasing demand for its driveline and metal forming products.

Magna International Inc

MGA

Current price

$48.40

Dana Holding Corporation

DAN

Current price

$20.12

Visteon Corporation

Current price

$121.25

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+8.95%

≈

About This Group of Stocks

Our Expert Thinking

These tariffs create a potential competitive edge for US-based manufacturers. As imported goods become more expensive, domestic producers may see increased demand, stronger pricing power, and improved profitability, particularly in automotive and industrial sectors.

What You Need to Know

This group represents a tactical investment opportunity based on the announced 30% tariff increase taking effect August 2025. These companies compete directly with European and Mexican imports and may benefit from shifting market dynamics.

Why These Stocks

Our analysts selected US-based manufacturers and suppliers with revenues closely tied to domestic industrial activity. These companies produce vehicles, auto parts, machinery, and components that directly compete with soon-to-be-tariffed imports.

Group Performance Snapshot

8.9%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 8.9% over the next year.

11 of 16

Stocks Rated Buy by Analysts

11 of 16 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🚗

Made in America Momentum

With a 30% tariff on foreign competitors coming in 2025, these US manufacturers could see a significant boost in market share and pricing power as imports become more expensive.

🔄

Industry Disruption Opportunity

This policy shift could reshape competition in automotive and manufacturing sectors, potentially creating winners among domestic producers as supply chains adjust to new economic realities.

🏭

Domestic Manufacturing Revival

These companies are at the forefront of a possible resurgence in US industrial activity, as tariffs incentivize more domestic production and potentially boost their sales and margins.

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